Axelar [AXL] witnessed an impressive 52.8% gain over a two-week period. In the last 24 hours alone, it spiked by 12.35%, although it experienced a notable downturn recently, resulting in a more modest 5% increase for the day.
The trading volume of this cryptocurrency, with a market capitalization of $700 million, shot up by 78% in the last 24 hours. This surge in trading activity can be attributed to optimistic market sentiments. An anticipated reevaluation of the $0.872 level as a potential support zone might present an attractive entry point for investors.
AXL Token’s Impressive Breakout Performance
Axelar broke free from a range-bound pattern that had been in place since mid-June. Over the past four months, the price fluctuated between $0.434 and $0.738. Recent trading activity witnessed AXL surpassing previous highs and then validating them as a strong support level.
The On-Balance Volume (OBV) demonstrated an upward trajectory, signaling an escalation in buying pressure. This indicator has been on an upward trend for the past month, enhancing the likelihood of a sustained upward movement.
While the daily Relative Strength Index (RSI) has not shown any divergence yet, it is approaching the overbought territory. Traders are advised to monitor this momentum indicator closely for early indications of a potential price correction.
The resistance levels at $0.872 and $1.1 may pose challenges for bullish momentum. However, given the strong buyer presence during and following the breakout phase, it is probable that the price of AXL token will surpass $1.1.
Potential Decline in Open Interest Looming Ahead?
During the surge towards $0.8 on October 11th and 12th, the Open Interest surged from $7.44 million to $21.6 million for AXL. However, subsequent to the breakout and consolidation near the $0.77 mark, the Open Interest exhibited a sharp drop to $12.8 million.
A similar pattern might unfold in the upcoming days once the $0.872 level is breached and confirmed as a new support level. Thus, traders are advised not to succumb to FOMO (Fear of Missing Out) and consider waiting for a favorable entry point.
Moreover, the continued uptrend in spot CVD suggests persistent demand for Axelar within the market.
Disclaimer: The information shared is the author’s personal opinion and should not be considered as financial, investment, trading, or any other form of advice.